FS Investments Launches First Interval Fund
FS Energy Total Return Fund, a $2 billion interval fund launched by FS Investment – formerly Franklin Square, was declared effective by the Securities and Exchange Commission.
As previously reported by The DI Wire, the fund plans to invest in the equity and debt securities of both public and private energy and energy infrastructure companies.
“FS Investments looks for ways to help investors access alternative sources of income and growth in the market, and we believe the energy industry has great long-term fundamentals if you have the flexibility to invest selectively across the entire sector and capital structure,” said Michael C. Forman, chairman and chief executive officer of FS Investments.
FS Investments believes changing sources of energy supply, aging energy infrastructure, merger and acquisition activity in the sector, and commodity price volatility have created an attractive environment for investing in energy and energy infrastructure companies.
“We always seek to match a fund’s structure with its investment strategy,” added Mike Kelly, chief investment officer of FS Investments. “FS Energy Total Return Fund has a broad investment mandate and while a primary focus of the fund will be in liquid equity securities, as an interval fund, it maintains the ability to invest in less liquid securities that have the potential for outperformance.”
FS Investments selected Magnetar Asset Management as the investment sub-adviser for the fund. For more than 10 years, Magnetar’s energy team has invested in the North American energy markets and manages approximately $4.3 billion of investor capital in private funds and institutional accounts.
FS Energy Total Return Fund is registered under the Investment Company Act of 1940 and continuously offers its shares on a daily basis. FS Investments currently manages more than $5 billion of energy and power assets, with a focus on directly originated private debt investments.
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